What was the effective income tax rate for Noodles & Company in 2022?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
l provision for income taxes | $ | 54 | $ 24 | $ 37 |
The reconciliation of income tax provision (benefit) that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying Consolidated Statements of Operations is as follows for 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Federal income tax benefit at federal rate | $ (7,730) | $ (2,065) | $ (688) |
| State income tax benefit, net of federal tax | (1,793) | (420) | (112) |
| Other permanent differences | 783 | 629 | 368 |
| Tax credits | (1,400) | (1,51 |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the effective income tax rate for the company in 2022 was (1.1) %. This figure reflects the overall impact of income taxes on the company's financial performance for that year. It's important to note that this is a consolidated rate, reflecting the tax situation across all of Noodles & Company's operations.
The effective income tax rate can differ from the standard federal or state tax rates due to various factors. These factors include state income tax benefits, permanent differences, tax credits, changes in valuation allowance, tax rate changes, deferred tax asset write-offs, and other items. For Noodles & Company in 2022, these specific adjustments collectively resulted in the effective income tax rate of (1.1) %.
For a prospective franchisee, understanding Noodles & Company's effective income tax rate provides insight into the company's overall financial health and tax management strategies. While this rate applies to the parent company, it's a component of the financial picture a franchisee should consider when evaluating the franchise opportunity. It is also important to consult with a financial advisor to understand the tax implications of investing in a Noodles & Company franchise.